In the wake of the financial crisis and with the advent of the Consumer Financial Protection Bureau (CFPB), federal and state enforcement officials have increasingly scrutinized consumer financial products and services. In many situations, these officials and agencies coordinate to advance common or similar claims and actions. Against this backdrop, we created the Consumer Finance Enforcement Watch blog – the marketplace’s first resource for real-time reporting on the full range of public federal and state consumer finance enforcement activity. Here, you will also find links to enforcement documents, statistics on the volume and nature of enforcement actions as well as reports and comments on significant enforcement trends and issues.

CFPB Settles with Online Debt-Settlement Company for Alleged CFPA and TSR Violations

CFPB sign

On April 13, 2021 the Consumer Financial Protection Bureau (CFPB) announced that it reached a settlement with an online debt-settlement company to resolve alleged violations of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531, 5536(a), 5564, 5565, and the Telemarketing Sales Rule (TSR), 6 C.F.R. Part 310. According to the complaint, the…

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Minnesota AG Announces Settlement with Student Loan Debt Relief Company

On April 13, 2021, the Minnesota Attorney General Office (Minnesota AG) announced that it reached a settlement with a California-based student-loan debt-relief company resolving alleged violations of Minnesota’s Debt Services Settlement Act, Prevention of Consumer Fraud Act, Minn. Stat. § 325F.69, et seq.,​ and Uniform Deceptive Trade Practices Act, Minn. Stat. § 325D.43, et seq. The Minnesota…

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Pennsylvania AG Settles with Student Loan Debt Buyer for $2.6 Million

Piggy Bank with a Graduation Cap

On April 6, 2021, the Pennsylvania Attorney General (Pennsylvania AG) announced that it reached an agreement with a Texas-based debt buyer concerning a portfolio of student loan debt it purchased from a now-defunct for-profit college. According to the Pennsylvania AG, the debt purchaser purchased the portfolio of loans after the for-profit college abruptly closed in December 2018 due to…

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CFPB Announces $860,000 Settlement with Debt Collection Company for Alleged Deceptive Practices and CFPA Violations

CFPB sign

​On April 6, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a third-party debt collection company and its former owner for alleged violations of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531, 5536 and Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et ​​seq. The CFPB alleged that…

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FTC Settles with California-Based Mobile Banking App Over Interest Rates and Access to Funds

FTC

On March 29, 2021, the Federal Trade Commission (FTC) announced that it had reached a settlement ​with a California-based mobile banking app, resolving allegations that the company had misled consumers about their ability to access their funds and the interest rates they would receive on their accounts. As we reported ​in November of last year, the FTC alleged…

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HUD Approves Settlement with Mortgage Lender Resolving Claims of Lending Discrimination

On March 19, 2021, the U.S. Department of Housing and Urban Development (HUD) announced ​that it approved a settlement with a national mortgage lender concerning allegations that the mortgage lender discriminated against a consumer in violation of the Fair Housing Act (FHA) when it denied the consumer’s mortgage loan application. The consumer filed a complaint with HUD…

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HUD Approves Conciliation Agreement with National Mortgage Lender Resolving FHA Violations

On March 8, 2021, the U.S. Department of Housing and Urban Development (HUD) announced​ that it had approved a conciliation agreement between a national mortgage lender and an African-American woman (the Complainant), resolving allegations that the mortgage lender provided an inaccurate appraisal of the Complainant’s home due to her race in violation of the Fair…

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